Owning a car is a long-term commitment and major purchase decision. While you should intend on owning your car for at least several years, there will come a time when it makes sense to sell it. For those that are in Maryland and would like to sell their car, there are a certain set of procedures and steps that need to be followed to ensure that it is sold properly the the ownership is legally transferred. One of the most important things that you need to do is to gather all of the necessary paperwork to effectuate the sale and transfer.
Certificate of Title
One of the most important documents that you will need to have when you are looking to sell your vehicle in Maryland is your vehicle title. The title of your vehicle is a document that you will hold that will say that you own the car and that it is held in your name. If you happen to have a loan out on your car, the bank will likely be holding this for you.
When you are going to sell your car, you will need to have this document signed by all parties involved. You will need to sign your name to indicate that you intend to sell it to the other party. The buyer of the vehicle will need to put their name and address on the document under the “Assignment of Ownership” section, which is located on the back of the form. This will then be received and processed by the state to effectuate the change.
Bill of Sale
In the State of Maryland, you will also need to provide a Bill of Sale form. This document is required if the car that you are selling is less than 7 years old and is being sold for less than the market value of the car. If you are selling it for far less than market value, the sale can be considered a gift and it can have tax implications.
Notice of Security Interest Filing
When you are selling your car, the Notice of Security Interest filing is another very important form that needs to be filled out. If you have a loan on your car, the bank that provided you with the loan will have a security interest in the vehicle. This document will show that all liens have been satisfied, or will be satisfied when the car is sold and the loan is repaid. This will be able to give the buyer of the vehicle the proper assurances that they are buying a vehicle that is clean from liens and judgments.
Finally, when you are looking to sell your car, you will need to give back your old license plates. In most cases, you will not be able to simply give the license plate to a new car buyer. Instead, you will have to give the old plate back to the state or have it otherwise discarded of.
Once you have obtained all of the necessary documents to complete the sale, it is important to provide original versions of the documents to the state. It would also be a good idea to keep copies of them for your records as you may need to reference them in the future.